Updated on: 2025/08/07 09:56 (UTC)
Overview
Thailand, or the Kingdom of Thailand, is a constitutional monarchy located in southeast Asia. Thailand consists of 76 provinces, or changwat, and one municipality, or maha nakhon. The countries that border Thailand are Myanmar to the west, Laos to the north and east, Cambodia to the southeast, and Malaysia to the south. The southern salient (panhandle) of Thailand is bordered by the Andaman Sea to its west and the Gulf of Thailand to its east, and the Gulf of Thailand also borders Thailand to the south of its main part. The country consists of 76 provinces and the special administrative area of Bangkok, which is the national capital city.
Thailand’s currency is the baht.
Employers in Thailand are responsible for withholding income taxes and social security contributions from employee paychecks in addition to making contributions to the social security fund. Employers also must adhere to regulations regarding compensation and benefits for all employees.
Foreign workers in Thailand are subject to the same income tax and labor laws as Thai citizens. However, foreign workers are only taxed on their Thai-sourced income, while Thai residents are taxed on their worldwide income.
Thai residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.
CURRENCY DETAILS
The currency of Thailand is the Thai baht (), also known simply as the baht. The internationally recognized three-letter currency code for the baht is THB, which also is one of the currency symbols for the baht. The standard plural form of baht is the same as its singular form, although the plural form bahts sometimes is used.
When an amount of baht is written using the currency symbol , the symbol precedes the numerical value with no space between the numerical value and symbol.
When an amount of baht is written using the currency symbol Bt, the symbol precedes the numerical value with no space, or less commonly a space, between the numerical value and symbol.
When an amount of baht is written using the currency symbol THB, the symbol either precedes or follows the numerical value with a space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a baht is referred to as a satang, which has the same standard plural form as its singular form, although the plural form satangs sometimes is used.
Digital Currencies: Effective since May 14, 2018, Thailand considers income and profits received from transactions involving cryptocurrency to be subject to income tax withholding. The withholding rate is 15% for residents and nonresidents.
TAXES
The national government generally enacts laws relating to income tax. Income tax is administered by the Thailand Revenue Department. Although Thailand is divided into 76 provinces and one special administrative area that also impose taxes, these taxes are not related to payroll.
The tax year in Thailand is the calendar year, Jan. 1 to Dec. 31.
Thailand uses a calendar known as the Thai Solar Calendar, which is identical to the Gregorian Calendar, but uses the Buddhist Era year-numbering system, which is the Gregorian Calendar year plus 543 years. For example, the Gregorian Calendar year 2021 is equivalent to the Buddhist Era year 2564.
Coronavirus (Covid-19) Guidance: The deadlines for income tax withholding returns and deposits for March and April 2020 were extended to June 1, 2020; those for May 2020 to June 30, 2020; those for June 2020 to July 31, 2020; those for July 2020 to August 31, 2020; and those for August 2020 to Sept. 30, 2020.
The February to August 2021 deadlines for income tax withholding returns and deposits filed electronically were extended to the last day of the given month.
Social Security Fund tax returns and deposits for March 2020 were to be made by July 15, 2020; those for April 2020 were to be made by August 15, 2020; and those for May 2020 were to be made by Sept. 15, 2020.
The Social Security Fund tax rate was also reduced to 5%, which consists of an employer contribution of 4% and an employee contribution of 1%, effective from March to May 2020.
The Social Security Fund tax rate was reduced to 2% for both employers and employees, effective from September to November 2020.
The Social Security Fund tax rate was reduced to 3% for both employers and employees, effective from January to March 2021. The employee rate was then further reduced to 0.5%, effective for February and March 2021.
The Social Security Fund tax rate was reduced to 2.5% for both employers and employees, effective from June to August 2021.
Thai Provident Fund contributions for periods from July to December 2021 may be postponed to at the latest the due date for December 2021.
Income Taxes
Income taxes are regulated and administered by the Revenue Department under the Revenue Code of Thailand.
Coverage: Employers are required to withhold income taxes for all employees. A resident is defined as an individual residing in Thailand for at least 180 days in a calendar year.
Employees: For income tax purposes, Thailand recognizes employees as individuals who agree to work for an employer in exchange for wages.
Rates and Thresholds: Income tax rates are levied on a progressive scale, with rates ranging from zero to 35%.
Thailand’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:| Range of Annual Income (Thai Baht) | Income Tax Rate |
|---|---|
| Up to 150,000 | Zero |
| More than 150,000 and up to 300,000 | 5% |
| More than 300,000 and up to 500,000 | 10% |
| More than 500,000 and up to 750,000 | 15% |
| More than 750,000 and up to 1 million | 20% |
| More than 1 million and up to 2 million | 25% |
| More than 2 million and up to 5 million | 30% |
| More than 5 million | 35% |
Employers in Thailand must withhold income tax on wages of employees who are annually paid at least 310,000. The wage withholding threshold is higher than Thailand’s generally applicable threshold of annual income at which personal income taxation is applicable, as personal income taxation is applicable on annual income greater than 150,000 received by an individual.
Registration: According to the Thai Revenue Code, all taxpayers must register with the Revenue Authority to receive a taxpayer identification number (TIN). Individuals may also use a personal identification number (PIN) to file and pay taxes in accordance with the civilian registration law. Individuals must register with the Revenue Authority within 60 days of accruing assessable income.
Taxable Amounts: Taxable income includes any remuneration given to an employee by the employer, including bonuses, holiday pay and allowances. Money given to employees as a per diem in addition to money given to employees for traveling expenses is tax exempt. Social Security Fund contributions are also exempt from income tax.
Withholding Methods: Employers are required to withhold income tax from employee’s paychecks at the time of each payment.
Returns and Remittance: Thailand requires withheld income tax to be reported and paid on a monthly basis. Income tax required to be withheld from employees’ wages during a month must be reported and paid to the Thailand Revenue Department within seven days of the date of payment, which, for payments made on the last day of a month, causes the payment due date for the withheld income tax to be the seventh day of the following month. Each payment of withheld income tax for a month must be accompanied by Form P.N.D. 1, Withholding Income Tax Return, which has the same due date as the due date for the withheld income tax detailed on the form.
Payments can be electronically submitted through the Revenue Department’s website. Form P.N.D. 1 must be submitted to the department even if no income tax was required to be withheld from wages during the month for which the report is applicable.
An annual tax return, Form P.N.D. 1 Kor, which indicates income tax withheld from employees’ wages during a year, must be submitted by employers by Feb. 28 of the year following the year for which data are reported on the form.
Effective from Feb. 1, 2021, to Jan. 31, 2024, the deadlines for filing withholding returns are extended by eight days for returns filed electronically, meaning monthly returns are due by the 15th of the following month and the annual return is due by March 8 of the following year.
A Withholding Tax Certificate must be issued to each employee to detail the amount of income tax withheld from an employee’s wages for a year. The Withholding Tax Certificate for an employee is due to the employee by Jan. 31 of the year after the year for which data are reported on the form. If an employee separates from employment before Dec. 31 of a year, the employee’s Withholding Tax Certificate for that year is due within one month of the date of the separation.
Employee Share Plans: According to analysis by White & Case LLP and the law firm DLA Piper, employees taking part in an employee share plan are subject to income tax on the spread of a share at purchase. Additionally, any gain from selling a share is subject to income tax if the share is repatriated by a Thai resident. Gains from employee share plans are not subject to social taxes.
Recordkeeping: According to the commercial code, records must be kept for 10 years.
Penalties: Individuals who do not comply with the income tax law can be subject to fines and imprisonment, both penalties being determined by the specific offence.
Social Taxes
Social taxes are remitted to the Social Security Fund and are regulated and administered by the Social Security Office and the Social Security Act of 1990. Social security benefits include benefits for death, disability, injury or sickness, maternity, old age and unemployment. The social security benefits are funded by the government, employers and insured persons.
Eligible individuals are employees between 15 and 60 years of age.
The Provident Fund in Thailand is a fund set up for voluntary contributions made by an employer and an employee. Employer contributions must always, at a minimum, match employee contributions.
Thailand’s workers’ compensation program also is known as its workmen’s compensation program, and the Social Security Office also manages the Workmen’s Compensation Fund. Employees who suffer a work-related injury or illness are entitled to compensation for medical expenses, as well as monthly payments from the Workmen’s Compensation Fund.
Coverage: Employers with at least one employee are required to withhold social security contributions on wages from all employees that are between 15 and 60 years of age and pay employer mandated social security payments. Self-employed individuals may also make voluntary contributions.
Rates and Thresholds: Employees and employers are required to pay contributions to Thailand’s Social Security Fund based on wages paid to employees. The total Social Security Fund contribution rate for both employees and employers is 5% of the employee’s gross monthly income, up to a monthly income cap. The total contribution rate for both employers and employees of 5% consists of a rate of 1.5% to fund sickness, maternity, disability, and death benefits; a rate of 3% to fund child allowance and old-age benefits; and a rate of 0.5% to fund unemployment benefits.
The maximum monthly amount of an employee’s wages upon which contributions to the Social Security Fund may be assessed is 15,000. The government has indicated that it intends for the maximum monthly amount of an employee’s wages upon which contributions to the Social Security Fund may be assessed to eventually increase to 20,000, but has not released a specified implementation date.
For workers’ compensation, each employer during its first four years of operation in Thailand must contribute to the Workmen’s Compensation Fund between 0.2% and 1% of annual payroll, with a particular employer’s assessment rate dependent on the general degree of risk associated with the industrial classifications of which it is part. Starting with the fifth year, an employer’s rate may be further affected by its experience rating based on its workers’ compensation program history.
The maximum annual amount of an employee’s wages upon which contributions to the Workmen’s Compensation Fund may be assessed is 240,000.
An employee may establish with an employer an agreement to make contributions to a voluntary Thai Provident Fund (TPF) designed to help the employee save for retirement. Employees may contribute 2% to 15% of their salary to a provident fund, and while employers are not required to match the employee’s contribution to the fund, it is customary for them to do so. The percentage of wages subject to deduction for a provident fund is determined by the terms of the fund. The maximum annual amount that can be contributed to an employee’s provident fund is 500,000.
Registration: Employers must register with the Social Security Office with the forms listed on the Social Security Office website. Employers must also register their employees with the Social Security Office within 30 days of the date in which an employee becomes eligible to be insured.
Taxable Amounts: Social security taxes are assessed on all remuneration, including pay for holidays and leave.
Withholding: Employers are required to withhold social security contributions from employee’s wages at the time of each payment.
Returns and Remittance: Social Security Fund contributions required to be withheld from employees’ wages during a month, and an employer’s Social Security Fund contributions due based on wages paid to employees during a month, must be reported and paid to the Thailand Revenue Department by the 15th day of the following month. The standard form for reporting Social Security Fund contributions to the Social Security Office is the Sor Por Sor 1-10.
Contributions to the Workmen’s Compensation Fund generally are made on an annual basis and are due by Jan. 31 of each calendar year, together with Form Kor Tor 26. Reconciliation of any additional Workmen’s Compensation Fund amounts owed, if applicable, must be resolved by Feb. 28, with payment, if applicable, submitted together with Form Kor Tor 20. However, in the first year of operation in Thailand, an employer must pay the Workmen’s Compensation Fund assessment on the first day of operation in the country.
Contributions to a provident fund for an employee’s retirement must be made by the third business day following the date when wages were paid to the employee from which contributions to the fund were to be withheld.
Recordkeeping: Records must be kept for 10 years.
Penalties: Employers and employees who do not comply with the Social Security Act can be subject to fines of up to 20,000, a prison sentence of up to six months, or both.
Employers who make late payments are subject to paying an additional 2% of the contribution per month or fraction of a month that the contribution is unpaid.
Other Taxes
Thailand’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Thailand’s changwat, maha nakhon, or local jurisdictions.
COMPENSATION AND BENEFITS
Labor laws and decrees in Thailand are regulated by the Ministry of Labor and implement standards for minimum wage, overtime pay, hours of work, holidays, leave, wage payment and termination pay.
Worker’s Compensation is regulated by the Workmen’s Compensation Act in Thailand.
Retirement plans are covered by Social Security.
Coronavirus (Covid-19) Guidance: The normal public holidays given for Songkran, from April 13-15, 2020, were postponed and a replacement public holiday was given on July 27, 2020.
Minimum Wage
Minimum wages in Thailand vary among the country’s provinces, and the number of different minimum wages in effect among the provinces can be adjusted by the national government. The special administrative area of Bangkok has a minimum wage equivalent to the minimum wage for provinces assigned to either the highest minimum wage level or second-highest minimum wage level, with the determination of which level is in effect for Bangkok subject to change when adjustments to provincial minimum wages take effect.
Effective since Jan. 1, 2020, Thailand’s daily minimum wages among its provinces range from 313 to 336. Effective from April 1, 2018, to Dec. 31, 2019, Thailand’s daily minimum wages among its provinces ranged from 308 to 330.
Effective since Jan. 1, 2020, Bangkok has a daily minimum wage of 331, and the provincial daily minimum wages are as follows:| Minimum Wage Level | Provinces Assigned to Minimum Wage Level | Daily Minimum Wage (Thai Baht) |
|---|---|---|
| Level 1 | Narathiwat, Pattani, and Yala | 313 |
| Level 2 | Amnat Charoen (Umnad Chareun), Chaiyaphum (Chaiyabhumi), Chiang Rai, Chumphon, Kamphaeng Phet, Lampang, Lamphun, Mae Hong Son, Maha Sarakham, Nakhon Si Thammarat, Nong Bua Lamphu (Nongbua Lumphoo), Phichit, Phrae, Ranong, Ratchaburi, Satun, Si Sa Ket, Sing Buri, Sukhothai, Tak, Trang, and Uthai Thani | 315 |
| Level 3 | Ang Thong, Bueng Kan, Buri Ram, Chai Nat, Kanchanaburi, Loei, Nakhon Phanom, Nakhon Sawan, Nan, Phatthalung, Phayao, Phetchabun, Phetchaburi, Phitsanulok, Prachuap Khiri Khan, Roi Et, Sa Kaeo (Sa Kaew), Udon Thani, Uttaradit, and Yasothon | 320 |
| Level 4 | Chanthaburi, Kalasin, Mukdahan, Nakhon Nayok, Sakhon Nakhon, and Samut Songkhram | 323 |
| Level 5 | Prachin Buri | 324 |
| Level 6 | Chiang Mai, Khon Kaen, Krabi, Lop Buri, Nakhon Ratchasima, Nong Khai, Phang Nga, Phra Nakhon Si Ayutthaya (Ayutthaya), Saraburi, Song Khla, Suphan Buri, Surat Thani, Trat, and Ubon Ratchathani | 325 |
| Level 7 | Cha Choeng Sao | 330 |
| Level 8 | Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon | 331 |
| Level 9 | Rayong | 335 |
| Level 10 | Chon Buri and Phuket | 336 |
| Minimum Wage Level | Provinces Assigned to Minimum Wage Level | Daily Minimum Wage (Thai Baht) |
|---|---|---|
| Level 1 | Narathiwat, Pattani and Yala | 308 |
| Level 2 | Amnat Charoen (Umnad Chareun), Chaiyaphum (Chaiyabhumi), Chiang Rai, Chumphon, Kamphaeng Phet, Lampang, Lamphun, Mae Hong Son, Maha Sarakham, Nakhon Si Thammarat, Nong Bua Lamphu (Nongbua Lumphoo), Phichit, Phrae, Ranong, Ratchaburi, Satun, Sing Buri, Si Sa Ket, Sukhothai, Tak, Trang, and Uthai Thani | 310 |
| Level 3 | Ang Thong, Bueng Kan, Buri Ram, Chai Nat, Kanchanaburi, Loei, Nakhon Phanom, Nakhon Sawan, Nan, Phatthalung, Phayao, Phetchabun, Phetchaburi, Phitsanulok, Prachuap Khiri Khan, Roi Et, Sa Kaeo (Sa Kaew), Surin, Udon Thani, Uttaradit, and Yasothon | 315 |
| Level 4 | Chanthaburi, Kalasin, Mukdahan, Nakhon Nayok, Prachin Buri, Sakon Nakhon, and Samut Songkhram | 318 |
| Level 5 | Chiang Mai, Khon Kaen, Krabi, Lop Buri, Nakhon Ratchasima, Nong Khai, Phang Nga, Phra Nakhon Si Ayutthaya (Ayutthaya), Saraburi, Song Khla, Suphan Buri, Surat Thani, Trat, and Ubon Ratchathani | 320 |
| Level 6 | Cha Choeng Sao, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon | 325 |
| Level 7 | Chon Buri, Phuket, and Rayong | 330 |
Overtime
Overtime is considered any work done beyond eight hours a day or 48 hours in a week. Overtime done on a normal work day is remunerated at 1.5 times the rate or normal pay. Any overtime worked on a holiday is remunerated at three times the normal rate of pay. The total amount of overtime and holiday cannot exceed 36 hours in one week.
Hours of Work
The normal work day is eight hours a day and the maximum workweek is 48 hours a week. If work is hazardous, as decided by ministerial regulations, the maximum work day is seven hours and the maximum workweek is 42 hours.
Holidays
Employees in Thailand must receive at least 13 paid holidays a year, which must include Labor Day (May 1); however, at present there are more than 13 official holidays. Employees that work on a holiday are entitled to twice the normal rate of pay. The annual holidays are as follows:
- Jan. 1: New Year’s Day
- Makha Puja Day
- April 6: Chakri Day
- April 13-15: Songkran Festival (Thai New Year)
- May 1: Labor Day
- May 4: Coronation Day (starting in 2020)
- June 3: Her Majesty the Queen’s Birthday
- Visakha Puja Day
- Asanha Puja Day
- July 28: His Majesty the King’s Birthday
- Aug. 12: Her Majesty the Queen Mother’s Birthday
- Oct. 13: His Majesty King Bhumibol Adulyadej Memorial Day
- Oct. 23: King Chulalongkorn Day
- Dec. 5: Anniversary of His Majesty King Bhumibol Adulyadej’s Birthday
- Dec. 10: Constitution Day
- Dec. 31: New Year’s Eve
Several holidays are based on the lunar calendar and fall on different days of the Gregorian calendar each year. If a holiday falls on a weekend, its observance moves to a weekday.
Three additional public holidays are recognized in the provinces of Narathiwat, Pattani, Satun, Songkhla, and Yala: the first day of the lunar new year and the Islamic holidays of Eid al-Fitr and Eid al-Adha. Special overtime pay for workers in these provinces may be required.
Leave
Employees are entitled to six days of leave after working for one year. Employees can be entitled to more than six days of leave per year after two years of service. Employees who have not worked for a year can accrue leave days on a prorated basis.
Maternity Leave: Effective since May 5, 2019, female employees are entitled to take up to 98 days of maternity leave. The employer is required to provide full pay for 45 days, and women who are eligible may receive funds from the social security system for the remaining 53 days. To be eligible for the social security benefit, insured persons or their spouses must have made contributions into the system for at least seven of the 15 months preceding medical treatment for pregnancy. Effective until May 4, 2019, female employees were entitled to 90 days of maternity leave, with the employer required to provide full pay for 45 days.
Military Service Leave: Employees are entitled to take paid leave of up to 60 days per year for military service.
Personal Leave: Effective since May 5, 2019, employees may take up to three days of paid leave for necessary business. The term necessary business is not legally defined, but can include governmental obligations, such as receiving an ID card or driver’s license; managing weddings or funerals; or other religious practices. Effective until May 4, 2019, personal leave was not required to be paid and the number of days was determined by the employer.
Sick Leave: Employers pay for 30 days of sick leave each year, but employees are entitled to take unpaid sick leave as long as is necessary. However, after three consecutive sick days, an employer may ask that an employee provides a medical certificate.
Training Leave: Employees are entitled to take unpaid leave for training or development of knowledge and competence. Such training must consist of a course or program with a definite duration. The employer may deny training leave if the employee has already taken such leave for 30 days or more or on three or more prior occasions or if granting such leave would adversely affect the employer’s business operations.
Weekly Holiday: Employees are entitled to one paid holiday a week. There cannot be more than six days between weekly holidays, and employees can decide with their employers which day to take as a holiday.
Wage Payment
Wages must be paid no less than once a month. Employers must pay employees at the place of work unless otherwise decided between the employer and employee.
Bonuses and Special Benefits
Thailand does not require employers to provide bonus payments to employees.
Termination Pay
Effective since May 5, 2019, employers must remunerate terminated employees as follows: for employees who have worked for at least 120 days and up to a full year, at least 30 days of regular pay; for employees who have worked at least one year and up to three years, at least 90 days of pay; for employees who have worked for at least three years and up to six years, at least 180 days of pay; for employees who have worked for at least six years and up to 10 years, at least 240 days of pay; for employees who have worked for at least 10 years and up to 20 years, at least 300 days of pay; and for employees who have worked for at least 20 years, at least 400 days of pay. Effective until May 4, 2019, all employees that worked for at least 10 years received 300 days of pay.
If an employer is moving to a new location or moving employees to another location, and does not post the required 30 days’ notice, the employer must pay employees who do not wish to work at the new location 30 days of wages within seven days from the date of termination. Effective since May 5, 2019, employees who are to move to a new location may notify the employer that they do not wish to move within 30 days of the posting of notice of the move, or from the date of the move if no notice is given, and may receive the amount of severance pay to which they otherwise were entitled within seven days from the date of termination. Effective until May 4, 2019, employees who did not wish to move were to receive at least 50% of the severance pay to which they were entitled.
Workers’ Compensation
Workers’ Compensation is regulated by the Workmen’s Compensation Act and the Social Security Office in Thailand. More information is covered under social taxes.
Recordkeeping
Employment records must be kept for a minimum of two years.
FOREIGN WORKERS
Foreign workers are entitled to the same rights as Thai citizens and are generally subject to the same laws for tax and labor. According to the Foreign Employment Act, foreigners are prohibited from working in certain occupations. The prohibited occupations are listed within the act.
Visas: Foreigners wishing to work in Thailand must apply for a nonimmigrant visa, category “B” (for business). To obtain a visa, a foreign worker must get a letter of approval from the Ministry of Labour. The letter of approval must first be obtained by the worker’s prospective employer in Thailand, who is required to submit Form WP3 to the Office of Foreign Workers Administration within the Ministry of Labour, or to a Provincial Employment Office in the respective province. Foreign workers must also apply for a work permit in Thailand before receiving a visa.
Taxes: Nonresidents are taxed progressively on the same scale as residents. Income tax rates vary from 5% to 35% depending on the income bracket. Nonresidents are also subject to social taxes at the same rates as residents. Nonresidents are taxed only on Thai-sourced income, while residents are taxed on worldwide income.
Wages/Payments: Workers generally are paid in Thai currency, but can be paid in foreign currency if necessary.
WORKING IN THE UNITED STATES
Foreign workers from Thailand must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate
Thai workers are eligible to work in the U.S. under H-2B visas, which cover labor or services of a temporary or seasonal nature in occupations other than agriculture or registered nursing. The number of H-2B visas issued each year is limited by U.S. law.
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Thai citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes.
Thailand has a tax treaty with the U.S.
State and local taxation of Thai workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Thailand and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Thailand and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.
Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Thailand and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the ith the employer.
Students, trainees, teachers and researchers in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student, trainee, teacher or researcher is temporarily in the U.S. for purposes of studying or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of teaching or engaging in research for a period not expected to exceed two years for teachers and five years for students by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. The student exemption is not to exceed $7,500 a year; no limit is placed on the teacher or researcher compensation for Thai residents.
Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Thailand and the U.S. have not entered into a totalization agreement.
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Thailand has entered into more than 50 income tax treaties, including an income tax treaty with the United States. Thailand does not have a totalization agreement with the United States for social tax coverage purposes.
The countries with which Thailand has a bilateral income tax treaty in effect are Armenia, Australia, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bulgaria, Cambodia, Canada, Chile, China, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Kuwait, Laos, Luxembourg, Malaysia, Mauritius, Myanmar, Nepal, the Netherlands, New Zealand, Norway, Oman, Pakistan, Philippines, Poland, Romania, Russia, Seychelles, Singapore, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, the United States, Uzbekistan, and Vietnam.
Thailand additionally has an income tax treaty in effect with Taiwan (the Republic of China).
Thailand also has an income tax treaty in effect with the special administrative region of Hong Kong.
Thailand does not have any totalization agreements for social tax purposes in force.
RESOURCES
All Resources in English unless otherwise noted.
General
U.S. State Department: U.S. Relations With Thailand
CIA World Factbook: Thailand
Embassy of Thailand in Washington, D.C.
Currency Details
International Organization for Standardization: Currency Codes - ISO 4217
Unicode Consortium: Currency Symbols
United Nations: United Nations Terminology Database: Thailand
Royal Decree on Amendment to the Revenue Code (No. 19)
Taxes
Thailand Revenue Department (Thai):
- Forms
- Thailand Revenue Code
- Extension of Deadlines for Electronically Filed Returns (Thai)
- 2021 Extension of Deadlines for Returns (Thai)
Thailand Social Security Office
Thailand Securities and Exchange Commission: Thailand Provident Fund (Thai)
Postponement of Provident Fund Contributions from July to December 2021 (Thai)
Social Security Office:
- Reduction of Social Taxes from September to November 2020 (Thai)
- Reduction of Social Taxes from January to March 2021 (Thai)
- Reduction of Employee Social Taxes from February to March 2021 (Thai)
Compensation and Benefits
Thailand Labor Protection Act
Thailand Labor Protection Act (No. 2)
Thailand Labor Protection Act (No. 3)
Thailand Labor Protection Act (No. 7) (Thai)
Thailand Ministry of Labour (Thai): Minimum Wage Rates (Thai)
Foreign Workers
Thailand Foreign Workers Administration Office: Thailand Law on Foreign Workers (Thai)
Thailand Ministry of Foreign Affairs
Working in the United States
U.S. Department of Labor:
- Foreign Labor Certification
- Hiring Foreign Workers
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
Treaty Arrangements
Thailand Revenue Department: Tax Treaties